SENATE BILL REPORT

                            SB 6246

AS REPORTED BY COMMITTEE ON LABOR & COMMERCE, FEBRUARY 2, 1994

Brief Description:  Concerning premium finance agreements.

SPONSORS: Senators Fraser and Amondson

SENATE COMMITTEE ON LABOR & COMMERCE

Majority Report:  Do pass. 

     Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Deccio, Fraser, McAuliffe, Newhouse, Pelz, Prince, Sellar, Sutherland, Vognild and Wojahn.

Staff:  Blaine Gibson (786‑7375)

Hearing Dates: February 1, 1994

BACKGROUND:

Premium finance agreements allow for a delinquency charge of $1 to 5 percent of a delinquent installment.

SUMMARY:

The delinquency charge is limited to $5 only if the loan in default is for personal, family or household purposes. 

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

The $5 limit on delinquency charges on premium finance agreements should only apply to personal, family, and household purposes.

TESTIMONY AGAINST:  None

TESTIFIED:  Mal Murphy, Lane, Powell (pro); Richard Larkin, Berjac of Portland (pro)